SeekingAlphahttp://www.businessinsider.com/category/seekingalpha
en-usTue, 03 Mar 2015 18:01:04 -0500Tue, 03 Mar 2015 18:01:04 -0500The latest news on SeekingAlpha from Business Insiderhttp://static3.businessinsider.com/assets/images/bilogo-250x36-wide-rev.pngBusiness Insiderhttp://www.businessinsider.com
http://www.businessinsider.com/shane-dinneen-seeking-alpha-2014-4The Young Pershing Square Analyst Who Worked On The Herbalife Short Has Re-Emerged http://www.businessinsider.com/shane-dinneen-seeking-alpha-2014-4
Wed, 30 Apr 2014 13:39:00 -0400Julia La Roche
<p><img style="float:right;" src="http://static5.businessinsider.com/image/536113dceab8ea605d28bb61-1200-924/shane-dinneen-4.png" border="0" alt="Shane Dinneen" /></p><p>Shane Dinneen, the young Pershing Square analyst who worked on the Herbalife short, has broken his silence since resigning from the hedge fund several months ago.&nbsp;</p>
<p>Dinneen wrote&nbsp;a blog post on Herbalife's first quarter <a href="http://www.businessinsider.sg/herbalife-q1-earnings-2014-4/">earnings</a> report <a href="http://seekingalpha.com/article/2171953-some-thoughts-on-herbalifes-reported-q1-results">for SeekingAlpha</a>&nbsp;yesterday.</p>
<p>He's also been writing incredibly long <a href="http://seekingalpha.com/author/shane-dinneen/comments">comments</a> on Herbalife-related articles. So it looks like we could be hearing more from him.&nbsp;</p>
<p>Here's his summary from his first SeekingAlpha post:</p>
<ul>
<li>Herbalife's headline numbers in Q1 appear good at first blush, but below the surface, cracks are beginning to appear in the foundation.</li>
<li>Herbalife's write-down in Venezuela in Q1 should have been bigger. Had the company used the SICAD II rate to re-mark its books, GAAP EPS would have been ~ZERO.</li>
<li>Adjusting for the effect of exchange rate changes on cash, cash flow from operations DECLINED 25% vs. Q1'13.</li>
<li>Dividend cancellation could indicate Herbalife is concerned about having sufficient distributable reserves at its parent company and US subs to meet its previously reported dividend, repurchase and capex guidance.</li>
<li>Various red flags in Q1 suggest the business could be headed for a slowdown (not a good thing for a momentum-driven business).</li>
</ul>
<p><span style="font-size: 15px; line-height: 1.5em;">Dinneen played a major role in putting together Pershing Square's Herbalife short position.</span></p>
<p><span>In December 2012, Pershing Square publicly delcared that it's short $1 billion worth of Herbalife stock.</span></p>
<p><span>Pershing's founder Bill Ackman said he believes the company operates as a "pyramid scheme." He's betting that the stock will go to $0 because regulators, specifically the Federal Trade Commission, will investigate the company and shut it down.&nbsp;</span></p>
<p>Dinneen got to help Ackman give a massive <a href="http://www.businessinsider.com/bill-ackmans-herbalife-presentation-2012-12?op=1">342-slide presentation</a> at that special Sohn event. That's something that most young analysts will never get to do in their career.</p>
<p><span>In the months that followed, though, the stock rose higher and Pershing Square had amassed hundreds of millions in paper losses.&nbsp;</span></p>
<p>In the beginning of this year, Ackman <a href="http://www.businessinsider.com/bill-ackmans-letter-about-shane-dinneen-2014-1">sent a letter</a> confirming that Dinneen had resigned from the fund a while ago. Prior to that, the Twittersphere had been <a href="http://www.businessinsider.com/pershing-square-shane-dinneen-2014-1">speculating that Dinneen was no longer in Pershing's offices</a>.</p>
<p>In his investor letter, Ackman called Dinneen&nbsp;"one of the most talented investment analysts" he had ever worked with and someone he holds in "high regard." He also said that Dinneen is welcome back at Pershing Square at any time.</p>
<p><span>Just last month, Herbalife confirmed that it's&nbsp;</span><span></span><a href="http://www.businessinsider.com/herbalife-halted-2014-3">being investigated by the FTC</a><span>.&nbsp;</span></p>
<p><span>Pershing Square still hasn't broken even on its Herbalife short.</span></p>
<p><a href="http://seekingalpha.com/article/2171953-some-thoughts-on-herbalifes-reported-q1-results"><strong>Read Dinneen's full article on SeekingAlpha &raquo;</strong></a></p><p><a href="http://www.businessinsider.com/shane-dinneen-seeking-alpha-2014-4#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/business-insider-beige-book-2012-10America's Biggest Companies Reveal What's Really Going On In The Global Economyhttp://www.businessinsider.com/business-insider-beige-book-2012-10
Mon, 22 Oct 2012 09:28:55 -0400Lucas Kawa
<p><img style="float:right;" src="http://static2.businessinsider.com/image/4fb07ec3eab8ea661b00000b-444-333/jamie-dimon.jpg?maxX=400&amp;maxY=300" border="0" alt="jamie dimon" width="400" height="300" /></p><p>Around a fifth of the S&amp;P 500 have reported their third quarter earnings, which means analysts and investors alike are swamped under an avalanche of numbers. EPS have been <a href="http://www.factset.com/websitefiles/PDFs/earningsinsight/earningsinsight_10.19.12">pleasantly surprising thus far</a>, with 70% of S&amp;P 500 companies beating expectations.</p>
<p>While these numbers can serve as measures of past results and indicators of future performance, they often fail to highlight underlying economic and market trends.</p>
<p>So we examined conference calls and independent research reports to bring you market insights for the rest of 2012 and 2013 that can&rsquo;t be shown with just numbers.</p>
<p>The political landscape, concerns about a slowing Chinese economy, and the growth potential of emerging markets are just a few of the issues on executives&rsquo; minds.</p><h3>Costco says big companies can plan for and manage new healthcare requirements</h3>
<img src="http://static4.businessinsider.com/image/4dadd57a49e2aeb6381b0000-400-300/costco-says-big-companies-can-plan-for-and-manage-new-healthcare-requirements.jpg" alt="" />
<p><p>"Each year for the last two or three years and certainly this year and next year under different parts of the new Healthcare requirements, there&rsquo;s been some additional input numbers into our expense...So we don&rsquo;t think it&rsquo;s going to have a big impact to us like it may to others but you know, others may do some things that may be less of an impact to them. I don&rsquo;t know, but it&rsquo;s fair to say from our perspective, it&rsquo;s kind of been built into our numbers and we&rsquo;ve been able to handle it."</p>
<p><em>Source: <a href="http://seekingalpha.com/article/916411-costco-wholesale-corporation-s-ceo-discusses-q4-2012-results-earnings-call-transcript">Seeking Alpha</a></em></p></p>
<br/><br/><h3>Nike warns that it's getting more expensive to make things in China</h3>
<img src="http://static2.businessinsider.com/image/4edfb66becad047374000021-400-300/nike-warns-that-its-getting-more-expensive-to-make-things-in-china.jpg" alt="" />
<p><p>&ldquo;Gross margin declined 80 basis points to 43.5 percent. Gross margin continued to benefit from pricing actions and product cost reduction initiatives, however, this was more than offset by higher input costs, primarily materials and labor.&rdquo;&nbsp;</p>
<p><em>Source: <a href="http://www.factset.com/websitefiles/PDFs/earningsinsight/earningsinsight_10.19.12 ">FactSet</a></em></p></p>
<br/><br/><h3>American Express notes that China's slowing growth hurts Australia's economy</h3>
<img src="http://static6.businessinsider.com/image/4d669153ccd1d55270080000-400-300/american-express-notes-that-chinas-slowing-growth-hurts-australias-economy.jpg" alt="" />
<p><p>"...that's probably a reflection of the fact that China is slowing down and Australia's economy has some pretty close linkages to China. So that's the biggest impact that we're seeing that is influencing the slowdown in the growth rate in billings in that region."</p>
<p><em>Source: <a href="http://seekingalpha.com/article/931161-american-express-management-discusses-q3-2012-results-earnings-call-transcript">Seeking Alpha</a></em></p></p>
<br/><br/><a href="http://www.businessinsider.com/business-insider-beige-book-2012-10#phillip-morris-finds-southern-european-smokers-are-switching-to-cheaper-and-illegal-substitutes-4">See the rest of the story at Business Insider</a> http://www.businessinsider.com/the-apple-investor-may-23-2011-5THE APPLE INVESTOR: Stock Going Lower, Although Fundamentals Indicate The Contrary (AAPL)http://www.businessinsider.com/the-apple-investor-may-23-2011-5
Mon, 23 May 2011 11:59:27 -0400Heather Leonard
<p><em><strong>The Apple Investor</strong> is a daily report from SAI. <a href="http://www.businessinsider.com/apple-investor-newsletter-2010-2">Sign up here to receive it by email</a>.</em></p>
<hr />
<p><strong><img style="float:right;" src="http://static4.businessinsider.com/image/4c7f9ef87f8b9a0f53f30300-341-255/steve-jobs.jpg" border="0" alt="steve jobs" width="341" height="255" /><a href="http://www.businessinsider.com/blackboard/apple">AAPL</a> Down With The Markets <br /></strong>The major indices are taking a more than 1% dive in early trading after warnings about the finances of several European countries. Shares of AAPL, having struggled for the past 9 months are not immune and are down about $3. Upcoming catalysts include the WWDC starting June 6; <a href="http://www.businessinsider.com/blackboard/ipad-2" class="hidden_link">iPad</a> 2 sales updates; the next <a href="http://www.businessinsider.com/blackboard/iphone" class="hidden_link">iPhone</a> launch this fall; smartphone push into China and emerging markets; <a href="http://www.businessinsider.com/blackboard/itunes">iTunes</a> and other cloud initiatives; the continued evolution and adoption of <a href="http://www.businessinsider.com/blackboard/apple-tv">Apple TV</a>; and new platforms such as video, books / publishing and social (<a href="http://www.businessinsider.com/blackboard/ping">Ping</a>). Shares of <span class="hidden_link">Apple</span> trade at <a href="https://spreadsheets.google.com/spreadsheet/pub?hl=en&amp;key=0Ak6JroN3wjs9dENhY2lvRWtZZy1DYmxFNTBoMFpVTnc&amp;hl=en&amp;gid=5">11x Enterprise Value / Trailing Twelve Months Free Cash Flow</a> (incl. long-term marketable securities).</p>
<p><strong><a href="http://www.electronista.com/articles/11/05/20/memo.issued.prior.to.chengdu.disaster/">iPad Production Limitations Improve...</a> (Electronista)</strong><br />Production limitations that were hurting iPad shipments last quarter have "significantly improved," with "better yields and higher output due to successful retooling and conversion of more production lines to iPad 2," according to Sterne Agee analyst Shaw Wu. Following a mid-quarter channel check, Wu raised his unit sales estimates as well as his price-target to $460.</p>
<p><strong><a href="http://www.pcworld.com/article/228351/Foxconn_Explosion_Could_Lead_to_iPad_Shortages.html">...But Recent Foxconn Explosion Could Lead To Shortages Again</a> (PC World)</strong><br />There was an explosion at Foxconn killing three people late Friday. The building in question was dedicated to iPad production. Analyst Mike Abramsky of RBC Capital said that the worst-case scenario is that iPad production will be reduced by 2.8 million units, a drop of 36% for third-quarter production against an estimated production run of 8 million units. The best scenario is that production will be reduced by less than 1.3 million units as Foxconn makes repairs.</p>
<p><strong><a href="http://www.fastcompany.com/1754460/the-ebook-effect-barnes-and-noble-worth-over-1-billion">Liberty Media Jumping Into The EBook Game To Take On iPad And Kindle</a> (Fast Company)</strong><br />Liberty Media proposed a deal to purchase <a href="http://www.businessinsider.com/blackboard/barnes-and-noble">Barnes &amp; Noble</a> for $1.02 billion. Why would CEO John Malone bid for a company whose competitors, like <a href="http://www.businessinsider.com/blackboard/borders">Borders</a>, are on life support? It's all about <a href="http://www.businessinsider.com/blackboard/nook">Nook</a> and eBooks. Barnes &amp; Noble had the foresight to bite the electronic bullet, launching the Nook in 2009. Analysts are reacting to the deal with cautious optimism, most of them citing positive sales results and forward-looking hopes for the Nook.</p>
<p><strong><a href="http://seekingalpha.com/article/271151-ready-for-apple-microsoft-and-s-p-to-drop">Apple Stock Is Headed South</a> (Seeking Alpha)</strong><br />S&amp;P 500 futures are at a pivotal price point at 1340 (as of Friday), with the path of least resistance seeming to be a technical and fundamental drop to support. Adding to the potential negativity on equity indices is the outlook on high profile stocks, and the changes in first quarter hedge fund holdings. It would seem that Apple has lost the title of most widely held hedge fund holding, after 22 funds (over 10% of the total 195 that held Apple previously) closed their entire holdings of Apple, which will certainly impact the intra-day dynamics of the market going forward.</p>
<p><strong><a href="http://seekingalpha.com/article/269751-zaky-apple-s-p-e-ratio-falls-to-lowest-level-since-financial-crisis-despite-92-earnings-growth">Apple Valuation Lowest Since Financial Crisis</a> (Seeking Alpha)</strong><br />While Apple's revenue and earnings have skyrocketed over the past few quarters, its stock price has barely advanced since reaching $320 in late October, not even out performing the NASDAQ-100. The stock has simply been unable to keep pace with its explosive 90%+ growth in earnings with its P/E ratio falling to levels seen during the depths of the financial crisis. It's no wonder the average American investor no longer has any trust in equities. Who wants to invest in a system that doesn't reward investors when they're right about a company's fundamentals, earnings and valuation?</p><p><a href="http://www.businessinsider.com/the-apple-investor-may-23-2011-5#comments">Join the conversation about this story &#187;</a></p> http://seekingalpha.com/article/269751-zaky-apple-s-p-e-ratio-falls-to-lowest-level-since-financial-crisis-despite-92-earnings-growthWhy Is Apple's P/E Ratio At Its Lowest Since 2008 Despite 92% Earnings Growth?http://seekingalpha.com/article/269751-zaky-apple-s-p-e-ratio-falls-to-lowest-level-since-financial-crisis-despite-92-earnings-growth
Mon, 23 May 2011 10:02:04 -0400Andy Zaky
<p>While Apple's (<a href="http://seekingalpha.com/symbol/aapl" title="Apple Inc.">AAPL</a>) revenue and earnings have absolutely skyrocketed over the past few quarters -- it reported 92% growth in its recently ended fiscal Q2 alone --its stock price has barely advanced since reaching $320 in late October. Yesterday, the stock closed at $346.57, or 8.6% higher than where it was trading at over 7 months ago.</p>
<p>The NASDAQ-100 (<a href="http://seekingalpha.com/symbol/qqq" title="PowerShares QQQ Trust ETF">QQQ</a>), by contrast, has rallied 18.22% over the same time period. The stock hasn't even been able to outperform the NASDAQ-100 despite trading at the cheapest relative valuation of the group and posting almost the highest net income growth rate surpassed by only a handful of stocks with lofty valuations. Even the broader S&amp;P 500 (<a href="http://seekingalpha.com/symbol/spy" title="SPDR S&amp;P 500 Trust ETF">SPY</a>) has outperformed Apple since October, posting 16.2% gains in the period.</p>
<p><a href="http://seekingalpha.com/article/269751-zaky-apple-s-p-e-ratio-falls-to-lowest-level-since-financial-crisis-despite-92-earnings-growth" target="_blank">Click here to continue reading at Seeking Alpha...</a></p><p><a href="http://seekingalpha.com/article/269751-zaky-apple-s-p-e-ratio-falls-to-lowest-level-since-financial-crisis-despite-92-earnings-growth#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/seeking-alpha-sought-7-million-in-funding-2009-12Seeking Alpha Bags $7 Million In Fundinghttp://www.businessinsider.com/seeking-alpha-sought-7-million-in-funding-2009-12
Tue, 01 Dec 2009 18:26:00 -0500Alaska Miller
<p><img style="float:right;" src="http://static6.businessinsider.com/~~/f?id=4b15a51a00000000005eef5b" border="0" alt="Seeking Alpha logo" /></p><p></p>
<p>Seeking Alpha, a financial information and analysis website, has raised $7 million in a second round of funding, PaidContent reports.</p>
<p>DAG Ventures led the investment along with existing Seeking Alpha investors Benchmark and Accel Partners.</p>
<p>Founder and CEO David Jackson, <a href="http://paidcontent.org/article/419-seeking-alpha-raises-7-million-second-round/">in an email to PaidContent</a>, says the money will "support the [site's] innovation and growth plans for the coming years."</p><p><a href="http://www.businessinsider.com/seeking-alpha-sought-7-million-in-funding-2009-12#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/2008/12/10-investment-rules-for-the-very-wealthy10 Investment Rules For The Very Wealthyhttp://www.businessinsider.com/2008/12/10-investment-rules-for-the-very-wealthy
Mon, 15 Dec 2008 15:47:00 -0500Hilary Lewis
<p><img style="float:right;" src="http://static6.businessinsider.com/~~/f?id=48f4da4814b9b91e0069a1c8&amp;maxX=171&amp;maxY=128" border="0" alt="cashinhands.jpg" title="cashinhands.jpg" width="171" height="128" /></p><p>Seeking Alpha's Mark Sunshine presents 10 investment tips for the super rich, to keep you from becoming another Madoff victim.</p>
<p><a href="http://seekingalpha.com/article/110777-10-simple-investment-rules-for-the-very-wealthy">Seeking Alpha:</a></p>
<ul>
<li><strong><span>Uber-Country Clubs Aren't A Great Place To Make Investment Decisions</span></strong></li>
<li><strong><span>Ronald Reagan Was Right; Trust But Verify</span></strong></li>
<li><strong><span>Don't Invest In Stuff You Don't Have Time To Figure Out; Buy Treasury Bonds Instead</span></strong></li>
<li><strong><span>Don&rsquo;t Invest In Stuff You Don&rsquo;t Understand</span></strong></li>
<li><strong><span>Try To Use Common Sense</span></strong></li>
<li><strong><span>Risk and Return Are Correlated &mdash; The Higher The Return The Higher The Risk</span></strong></li>
<li><strong><span>Leverage Increases Risk, A Lot</span></strong></li>
<li><strong><span>Cheap Isn't The Same As Valuable</span></strong></li>
<li><strong><span>If Management Act Like Thugs, Don't Invest, Even If They Are Really Well Dressed Ivy League-Educated Thugs</span></strong></li>
<li><span><strong>When In Doubt Re-Read The First Nine Rules And Then Don't Invest</strong></span></li>
</ul>
<p>&nbsp;</p><p><a href="http://www.businessinsider.com/2008/12/10-investment-rules-for-the-very-wealthy#comments">Join the conversation about this story &#187;</a></p>